PHOTO: AFP/FILE

AFP, San Francisco

Apple on Thursday reported profit of $27.5 billion in the recently ended quarter, powered by iPhone and services revenue.

The net income, along with revenue of $102.5 billion, beat market expectations, despite a hefty financial hit from US tariffs and a slight ebbing of revenue in China when compared with the same period a year earlier.

“Apple is very proud to report a September quarter revenue record,” chief executive Tim Cook said in a release.

Apple shares were up more than 2 percent in after-hours trade that followed release of the earnings figures.

Overall sales of iPhones, the heart of Apple’s business, fell shy of market expectations, bringing in $49 billion in an increase from the same quarter last year.

The slight miss in iPhone revenue was still “encouraging given the successful iPhone 17 line-up launch” in September, CFRA Research vice president Angelo Zino said in a note to investors.

Apple’s services business, which sells digital content and subscriptions to users of its coveted gadgets, generated $28.8 billion in revenue, an increase of some $3 billion from the same quarter last year.

Analyst Zino described the performance of Apple’s services business as “standout.”

“These results come at the close of an extraordinary year for Apple in which we achieved an all-time revenue record of $416 billion for the fiscal year,” Cook said.

“We set an all-time revenue record for iPhone, and in services we achieved all-time records across every geographic segment.”

Cook predicted that the current fiscal quarter would be the best ever for Apple.

Cook touted the latest Apple devices and the tech giant’s custom chips and efforts to enhance products and services with artificial intelligence.